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Business:The Indian Rupee came under significant pressure on Thursday, (Indian Rupee Low))hitting an all-time low of 95.34 against the US Dollar during intraday trading in the interbank foreign exchange market. The sharp decline was driven by escalating geopolitical tensions in the Middle East and a surge in global crude oil prices, which crossed $122 per barrel.
However, the rupee showed mild recovery later in the day as oil prices eased slightly. It closed at 94.84 per dollar, gaining 4 paise compared to the previous close of 94.88.
Oil Prices and Global Uncertainty Weigh on Rupee
Market experts attribute the rupee’s weakness to rising crude oil prices and ongoing uncertainty surrounding US-Iran negotiations. Since India depends heavily on imported energy, any increase in global oil prices directly impacts the domestic currency.
Rupee Down Nearly 5% in 2026
So far in 2026, the rupee has depreciated by nearly 5%, reflecting sustained external pressure. On Thursday, it opened at 95.01 and slipped further to its record low before recovering slightly by the close.
Supply Concerns and Import Dependency
The situation has worsened due to supply disruptions linked to the Strait of Hormuz, a crucial route for global oil shipments. India imports around 88% of its crude oil and nearly 50% of its natural gas, making it highly vulnerable to global supply shocks.
FII Outflows Add Pressure
Foreign Institutional Investors (FIIs) have also contributed to the rupee’s weakness. According to market data, FIIs sold shares worth approximately ₹2,460 crore in the recent trading session, impacting overall market sentiment.
Experts believe that unless geopolitical tensions ease and oil prices stabilize, the Indian Rupee is likely to remain under pressure in the near term.
